OREANDA-NEWS. May 27, 2010. Svyazinvest has recommended an interim dividend for 9M10 of 15% for common shares, and 10% for preferred shares for Rostelecom and the RTOs, reported the press-centre of OTKRITIE Financial Corporation.

The date of record would be immediately after the buyout of those shareholders not wishing to participate in the share swap.

View: We view the decision to be of a technical nature, with the low dividend yields unlikely to impact Svyazinvest's restructuring.  

Valuation: The consolidated Rostelecom trades on a 2010 EV/EBITDA of 4.2x. 

Action: We reiterate our SELL rating and target price of USD2.55 on Rostelecom.